FundsIndia.com offers tax saving funds (ELSS funds) from dozens of mutual fund companies.
What are tax saving funds?
A tax saving fund (also called Equity Linked Savings Scheme (ELSS)), is a mutual fund scheme that invests in equity & equity related securities. It has a lock in period of 3 years. Therefore, investments made in the scheme cannot be redeemed for a period of 3 years.
As per Section 80C of Income Tax Act, individuals are allowed to invest up to Rs. 1.5 lakh in tax saving instruments, which will be deductible from their gross total income.
Tax-saving mutual funds (or ELSS – Equity Linked Saving Schemes, as they are more popularly known), insurance plans, PPF, and NSC are some of the avenues where an investor can invest and save tax.
What are the advantages of ELSS funds?
Equity linked saving schemes are equity-oriented mutual funds with tax benefits. They score over other tax saving investment products in some respects.
They have the lowest lock in period of three 3 years, and being market linked, they have the potential to generate good returns over the long term. Investors with moderate to high risk-appetite should seriously consider investing in these funds.
Who offers tax saving funds?
Almost all mutual fund companies offer tax saving mutual funds as part of their suite of fund offerings.
What are the best tax saving funds?
FundsIndia has done extensive research on tax saving funds and identified the best funds for you to invest in. You can look up these schemes here:
Please take a look and happy investing!